Nufarm Limited · ASX:NUF

Nufarm — 1H 2005 Earnings Presentation

22 slides from Nufarm's earnings presentation, March 2005

  1. Slide 1: Interim Results

    Interim Results 6 months to January 31, 2005 Doug Rathbone Managing Director 2005-03 Interim

  2. Slide 2: Headline Results

    Headline Results 1H 2005 1H 2004 $m $m Group Sales 686 540 Operating profit (loss) 8.8 (1.9) Agripec 18.2 - 27.0 (1.9) Non operating items 1.3 - Reported result 28.3 (1.9)

  3. Slide 3: Headline Results

    Headline Results 1H 2005 1H 2004 Earnings per share 16.8 cents (1.2) cents Interim dividend 9 cents 8 cents

  4. Slide 4: Headline Results

    Headline Results 1H 2005 1H 2004 $m $m Crop Protection Sales 628.4 477.1 Segment profit* 58.2 26.8 Chemicals Sales 57.4 62.7 Segment profit** 3.8 2.1 * Pre tax and unallocated costs; includes Agripec ** Pre tax and unallocated costs

  5. Slide 5: Major drivers

    Major drivers ƒ Additional summer cropping and stronger position in horticulture - Australia ƒ Timing of sales – proactive management ƒ Sales growth in key markets

  6. Slide 6: Business mix – 6 months to January 31

    Business mix – 6 months to January 31 Total revenues 2004 2005 88% 12% 92% 8% $540m $686m Crop Protection Industrial

  7. Slide 7: Geographic split

    Geographic split 2005 Half year revenues Americas 24% (2004 19%) Australasia Europe 54% 22% (2004 57%) (2004 24%) Total sales - $686 million

  8. Slide 8: Regional review – crop protection

    Regional review – crop protection Australasia Sales 400 ƒ Improved summer cropping 353.0 conditions in Australia 300 290.5 ƒ Impact of BASF product range 200 ƒ Early marketing program on ‘Roundup’ 100 ƒ Strong sales growth in Asian markets 0 2004 2005 6 months to January 31

  9. Slide 9: Regional review – crop protection

    Regional review – crop protection Americas Sales 200 ƒ Excellent support from US distribution 150 148.4 ƒ Growth in both ag and turf/ specialty sectors 100 86.5 ƒ Strong phenoxy sales in Brazil 50 0 2004 2005 6 months to January 31

  10. Slide 10: Agripec investment

    Agripec investment ƒ 80% sales growth 2003 – 2004 ƒ Rust in soybeans drives strong fungicide sales ƒ Balanced portfolio and expanded product range 2003 2004 1% 2% 4% 20% 42% 41% 54% 36% R$352m R$588m Herbicides Insecticides Fungicides Other

  11. Slide 11: Regional review – crop protection

    Regional review – crop protection Europe Sales 200 ƒ Slow start to season due to late winter 150 ƒ Encouraging signs in France 127.0 100 ƒ UK branded sales show strong 100.2 growth 50 ƒ Methyls manufacturing assets review completed 0 2004 2005 6 months to January 31

  12. Slide 12: Industrial Chemicals

    1H Results Industrial Chemicals 200 50 ƒ Specialty Products business sold 40 150 ƒ SEAC divestment 30 100 progressing 20 62.7 57.4 ƒ Chlor alkali plants slightly 50 10 3.8 down half on half 2.1 0 0 2004 2005 Sales Segment Profit 6 months to January 31

  13. Slide 13: Kevin Martin, Chief Financial Officer

    Kevin Martin Chief Financial Officer

  14. Slide 14: Results comparison – half on half

    Results comparison – half on half $m ƒ Loss at January, 2004 (1.9) ƒ Improvement in Crop Protection 11.5 ƒ Deterioration in Industrials (0.8) 8.8 ƒ Non operating items 1.3 10.1 ƒ Agripec 18.2 28.3

  15. Slide 15: Non-operating items

    Non-operating items $m ƒ Profit on sale of businesses 23.5 - Nufarm Specialty Products - Biological Wool Harvesting ƒ Methyls fixed asset restructure (14.2) ƒ Intangible asset review (3.4) ƒ Other (1.0) 4.9 ƒ Tax on above (3.6) 1.3

  16. Slide 16: Agripec

    Agripec Original Projected First forecast forecast half full year 2005 full year 2005 ƒ Operating profit 25.9 40.6 42.2 ƒ Goodwill (4.0) (7.7) (8.0) ƒ Interest (0.3) (12.0) (5.3) ƒ Profit before tax 21.6 20.9 28.9 ƒ Tax (3.4) (8.6) (5.9) ƒ Profit after tax 18.2 12.3 23.0

  17. Slide 17: Working Capital

    Working Capital 2005 2004 Difference $m $m ƒ Receivables 279.5 304.1 (24.6) ƒ Inventory 511.8 429.1 82.7 791.3 733.2 58.1 ƒ Payables - Operating (350.1) (302.2) (47.9) 441.2 431.0 10.2 ƒ Payable BASF - 68.6 68.6 441.2 362.4 78.8

  18. Slide 18: Gearing levels

    Gearing levels At January 31, 2005 126% At January 31, 2004 113% Original guidance for year end 75% - this will be comfortably met

  19. Slide 19: Guidance

    Guidance Doug Rathbone Managing Director

  20. Slide 20: Outlook for full year

    Outlook for full year ƒ Solid start to key selling period ƒ Sales growth expected in USA and most European markets ƒ Revised forecast contribution from Agripec Approx 35% NPAT growth on 2004

  21. Slide 21: Guidance revision – full year '05

    Guidance revision – full year ‘05 Previous Revised guidance guidance 12 months net profit ‘04 76.2 76.2 less contribution from Specialty Products / SEAC (6) (5) 70.2 71.2 plus 10% growth (estimate only) 77.2 78.3 plus Agripec (estimate only) 12 23 Operating tax paid profit 89.2 101.3 (excluding non

  22. Slide 22: Slide 22

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